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Closing Bell With Maria Bartiromo

News/Business. Maria Bartiromo. Analysis of the day's winners and losers in the stock market. New.

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01:00:00

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TOPIC FREQUENCY

Us 20, U.s. 5, Alan Krueger 5, Washington 5, America 5, Greece 5, Europe 5, Jay Carney 4, S&p 4, Petsmart 4, Sandra Levin 3, Ibm 3, Michelle 3, United States 3, Cnbc 3, Geico 2, Google 2, Citi 2, Nyse Euronext 2, Jackie 2,
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  CNBC    Closing Bell With Maria Bartiromo    News/Business. Maria Bartiromo. Analysis of the  
   day's winners and losers in the stock market. New.  

    November 26, 2012
    4:00 - 5:00pm EST  

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we're going out well off the lows. seeing a little more buying. down 45 points. we'll talk to the president's chief economic adviser about the fiscal cliff negotiations as second hour of the "closing bell" gets under way right now. welcome to "closing bell." bill griffeth rejoins us in a moment. no follow-through rally. stocks closing in the red on fiscal cliff fears. dow jones lower by 43 points, 12,966. nasdaq finishes higher by nearly 10, 2,976. and the s&p down almost 3%, 1406. >> the deadline for the fiscal cliff is nearly one month away. if we go over that cliff, russ says some investors are not prepared for that decline. >> he joins us now a long with
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michael, cnbc contributor for destination wealth management and mary thompson joins us as well. russ, you're saying it's not priced in at this point. what should we be worried about? >> it's not priced in. it's very hard to find much evidence, either from investors or the sell side that people really expect to go over the fiscal cliff. i think what that means is if we get into the end of the year and looks like negotiations are not going forward, we may not solve this before 2013, we're likely to see rise in volatility, likely to see selling. >> how bad could it be? >> if you look at what might happened, in other words, we go from an environment where the economy is chugging along, uninspiring but growing 2%, to go over the fiscal cliff which means for that period when we're over the fiscal cliff, contracting, that suggests that multiples come down probably as much as 10%. in addition you're likely to see drop in earnings estimates as
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well. some real risk if we go over the cliff. >> a lot. >> michael, you're not as concerned about the impact of the fiscal cliff on the markets. why? >> first of all, i don't think we'll go over the cliff. i think it's a lower probability we will not rather than we will. here's where i think you need to position a portfolio strategy. i don't think the market is priced in if we go over the cliff. what you need to do is be in risk assets, if this makes sense, more defense risk assets. dividend payers, technology, even overseas, emerging markets. china looks like it's finally starting to recover because the bottom line is, even if we don't go over the fiscal cliff, we'll still have a very, very slow growth environment for a period of time. you have to hedge both sides. don't get too optimistic but don't escape from the market completely because you could miss a rally up. >> mary, this dominates trading, doesn't it, the discussion about fiscal cliff? how much is it driving averages
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on every given day? >> it does. if you read the notes, you talk to traders, it's one of the first things they talk about every day. any headline you see about it, that's going to affect trading. as a result, just as a lot of our guests have been saying, a number of people are expecting volatility to increase as we get closer and closer to that deadline. that being said it appears fewer investors are taking a risk in the market. as of today, like last week, we're seeing very light volume. well below averages of 3.5 billion shares. it looks like investors may be waiting out this next month, or some anyways, to see what happens in washington. >> we've had a lot -- you know what's going to happen on the volatility side, we talk about that as a bad thing. figure you're a short term, 35, 45-day trader, that is a bad thing. if you're not, looking for entry points, these are the moments you're looking for to actually
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establish positions in names. >> you'd buy on these dips we've had? >> yes. but i'd make sure it's more than just a dip. i would buy on a bigger pullback. >> are you saying wait until we get clarity or buy on the dips? >> no, i agree with what michael said. first of all, i think there are assets that will do well over long term, whether we go over the fiscal cliff or not. dividend paying stocks outside of the united states. mega caps. there are some assets you want to own. one example, muns bonds. o one place you may want to consider -- >> we had a guest on last hour, we asked specifically about that idea and he said, i get it but they've run up so much, the risk/rewartd d is out of balanc and too risky. >> too expensive, he said. >> well, i think the entire
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fixed income space is expensive. in that sense i would agree. given most investors will still have most fixed income exposure it looks better than treasuries. if you look at the relative yield, not only is there a tax advantage you're picking up significant yield. >> michael, what would you buy here? >> how about this, gold? let's bias sets where people will be nervous and flee to assets that give them some sense of comfort. i think gold will be a $2,000 an ounce trade sometime in the next 12 months. again, i also agree you need to buy -- you should not buy treasury. i think treasuries are a bubble waiting to burst. i like municipal bond trade. i like intermediate to short term average quality corporate bonds where you're not really paying so much for the high corporate quality rate. i think you can get better yields. as russ mentioned, absolutely, investors are going to have to have some money in fixed income. you can't set in cash at zero percent, it will kill you from
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an inflation point. >> i've been at cnbc since 1998. sing the piece of advice given over and over is whatever you do, don't buy the long end of the treasury curve because it's a bad investment. and yet it has been the greatest investment. at some point that's going to change, mary, right? and then what? >> that's what -- a number of people are waiting for that. and then, you know, it's going to be a very different situation. you're going to have -- >> all hell's going to break loose. >> stocks will go up. >> a number of people are waiting for it. but it feels like we've been waiting for that for a while now. so, again, it's another part of this uncertainty in the market. >> ben bernanke has told us those yield will remain low at least through 2015. >> you know what the danger is there, though? even if yields don't back up that much, the coupon payments are so low right now, in other words, coupon payments are low, duration or rate sensitivity is high. even if you get a 50, 60 basis
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point back up in rates, that's going to hurt. a lot of people are not prepared for that. >> remember, if you want to compare this to the tech bubble, think about 1999. if you sold sun microsystems, horrible trade. went up. 2000, horrible trade, went up. 2001, it all played out. that's what's happening in long-term fixed income. >> and michelle was here through all of that, here at cnbc. thank you, all. see you later. mary, we'll see you later. meantime, stocks pared losses throughout the day. jackie is at the nasdaq. >> good afternoon. the markets logging losses. the nasdaq was the only average able to eke out a small gain. dow down 42. s&p down by nearly three points. the nasdaq was higher by almost ten points. let's take a look at some sectors and show you where we saw strength and weakness. lower sectors today, teleco and energy dragging us down. take a look at s&p 500 top five
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laggers, impossible to ignore some retail names on that list. we saw some strong sales out of black friday but caution in the marketplace as analysts are saying, you need to see that strong sales trend continue throughout the rest of the season. not just on one or two days. it was nordstrom and macy's we were watching. coach was on the list for a better part of the day. cabot oil and gas selling off with the broader energy complex. meantime on the flipside we did have our s&p 500 top gainers. of course a lot of those names included names traded here at the nasdaq. ebay was one of the big gainers, gaining on hopes today that it will catch up with amazon on cyber monday. of course, those numbers will be tallied up within the coming days. best buy was also seeing strength on that as well. last but not least, first solar knocked apple out of one of those spots there, out of the last spot. of course, apple was a stock that was contributing to the positive momentum on the nasdaq today. back over to you. >> got it, jackie. thank you so much.
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unfortunately, we have to go back to washington because there's so much influence on the markets lately. now more and more lawmakers are saying, we should absolutely let the country go over the fiscal cliff. many of them are democrats. however, congressman sandra levin isn't one of them. he says we have to deal with it and he'll deal with those who feel that way. he's on the cliff next. plus, no one's talking about what expenses need to be cut. in fact in the last hour we heard the white house is taking social security reform off the table as far as the fiscal cliff talks go. we'll get more details on on exactly what the president is willing to cut, alan krueger, council of economic advisers. that's on the other side of the break. cyber monday, is it hot or not? we'll break down the numbers, check in with a pair of retail analysts for the latest must-have apps. pet smart sells couture dog
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collars for -- guess how much? how about $150. and they're moving, too. no wonder pet smart stock has jumped 150% in the last year. pet smart ceo joins us in the back half of this half hour to talk about his company's past, present and future success. >> lucky would look great in one of those. erstand the importance of your goals. today, our financial advisors lead from a new position of strength. together with bank of america, they have access to more resources than ever before. a steadfast commitment to help you achieve your financial goals in life. that's the power of the right advisor. that's merrill lynch.
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snoou. the fiscal cliff deadline is 35 die as way, right? >> yes. kayla has a deal she wants to tell us the story about. >> a deal interestingly in the real estate space, two commercial real estate companies, avalon bay and equity residentials buying archstone. this is kind of like what happened to lehman brothers. this is pretty much the bulk of what's left of lehman being sold to these two companies for about 6 6$6.5 billion. interesting they're buying basically the car cuss cas.
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another sign of the housing sector picking up. >> boy, bigs zigs and zags on avalon bay. thank you. >> the fiscal cliff deadline is just 35 days away. today the white house seems to have taken social security reform off the table as a component to any deal regarding the fiscal cliff. listen to jay carney. >> we should address the drivers of the deficit. social security is not currently a driver of the deficit. that's an economic pact. while the president supports engaging with congress on a separate tract to strengthen social security, for entitlements we need to look at medicare and medicaid. >> joining to us talk about that and more is alan krueger, chairman of the council of economic advisers. can you help us interpret what
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jay carney just said? a lot of republicans have gone into this debate and discussion saying, you want more in taxes but in the same time we have to have entitlement reform. is he taking that off the table, mr. krueger? >> the president has pursued a balanced approach all along. he's had entitlement reform on the table. if you look at budgets, there are tough decisions there relating to health care costs, which are driving our deficits. additional revenue from upper income earners. >> medicare is still on the table when it comes to discussions about the fiscal cliff but not social security? what exactly are we talking about? >> as jay carney said, social security is not a driver of of the deficit. we need to focus on what has created the problems we're facing. those are rapid growth and health care costs and tax cuts for the very wealthy, which the nation can't afford. >> i get the -- what he's saying. in fact, i agree. we've already had the discussion here back and forth on what jay carney said about that, but is
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it hurting the process of looking to solve the fiscal cliff crisis comments publicly, taking certain things off the table? it's like a republican congressman saying i'm not going to go into a deal with raising taxes on the rich. it's a nonstarter. it doesn't help to solve the crisis when we're negotiating publicly, do you agree? >> i think the most important thing that could help address the crisis we face is to extend middle class tax cuts. that's what all sides say they can agree on. we released a report today which showed the middle tax class cuts are not extended, consumer spending will take a big hit next year, $200 billion reduction, reducing gdp growth by 4 percentage points. we could take uncertainty off the table if house of representatives passes the bill senate passed, extending middle class tax cuts. >> what about doing medicare
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reform at the very same time? >> you know, i think it's important that we make the steps to begin with that everybody agrees with. there are a lot of difficult issues we need to address. but let's take some of the uncertainty right off the table right away. >> but what do you say to republicans who come back and say, oh, great, you'll have us raise taxes and spending cuts will never come because they never do historically. >> first of all, i don't think that's true. if you look, we made some very difficult decision which cbo says saves hundreds of billions in the next two decades. what's important is that we come together and reach a balanced solution which is what the president has been seeking all along. >> you know, one of the components of this debate is what's more important to solve first, the spending part or the tax part -- the revenue part of all of this. can you prioritize that for us? can they be equal, necessarily? >> you know, we just had a big
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election campaign. president ran on the importance of extending tax cuts for middle class families who have been struggling for the last two decades in our economy. and for raising taxes on the top. it's important we address our problems in a balanced way. that's what the president laid out in his budget, which reduces the combined deficit over the next ten years by $4 trillion with a combination of spending cuts and additional revenue. >> but to michelle's point, if you deal with the tax tax portion first, you know, you lose some of the leverage and getting some spending cuts made at some point in the negotiations if you're emphasizing taxes first. do you agree? >> as far as economy goes, what could provide the greatest certainty for the economy right now would be for the house to take up the bill that the senate passed. extend those middle class tax cuts.
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>> mr. krueger, thank you for joining us. appreciate it very much. >> thank you for having me. >> alan krueger from the white house. in the latest score they're calling them physician ka cal cliff jumpers. senator patty murray of washington, congressman peter e defazio and peter welch saying it might make more sense to let the fiscal cliff come. >> sandra levin says this is no time to jump off the cliff. he joins us now from capitol hill. pleasure to have you here. >> thanks for joining us. >> why are your colleagues wrong about this? >> they're not saying jump off the cliff. i think everybody wants to avoid it. they're saying, let's not have a bad deal. no, we should avoid the cliff. everybody should listen to what alan krueger said. we need to take the steps. we need to extend middle class
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tax cuts that would be the major component of avoiding the impact of going over the cliff. we should not extend upper tax cuts. cbo says middle class tax cuts are imperative, not ohioer income tax cuts. that's a fact. >> i think it's very possible and i think what has to happen now is that the republicans, many who say they're no longer listening to grover cleveland, at least not bound by his pledge, now need to listen to the electorate and the electorate has spoken. they say address the cliff. do so by extending middle class tax cuts but not those for upper income tax pairs becauyers -- >> i'm sure you were being
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cheeky there. listen, the issue, though, is that the spirit of our problem long term is too much spending. historically, you raise the taxes, then the spending cuts don't happen. and then what does that mean? that means future generations, like the ones today, are now facing higher taxes because of spending cuts that never came. what do you say to folks who say, if we raise taxes now, in the end you guys will never cut? >> because there will be some spending cuts in -- addressing the cliff. the budget control act, we did cut spending. we know it has to be done. first we have to address the cliff. we have to make sure the amt, alternative minimum tax, is not impacted. we also have to make sure unemployment insurance is extended. we have to make sure physician reimbursement is not drastically
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cut. we have to look at social security. we're going to have to look at entitlements. but to try to wrap all of this into one ball essentially is endanger us going over the cliff. that's what alan krueger is saying. that's what the public said in the election. so, i hope the republicans will listen to the public and listen to the facts given by the cbo. that is extend the middle income tax cuts, which has the most impact on gdp. do not extend upper income tax cuts because they're unfair, increase the deficit and not essential for economic growth. that's what cbo said. let's listen to it. it's an independent agency. >> congressman levin, good to see you. thank you for joining us. >> thank you. >> sandra levin of michigan joining us from washington today. the other big story in washington, a shakeup at s.e.c. eamon javers joins us with
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details. >> a lot of changes at s.e.c. mary schapiro is out. she'll be leaving on december 14th. president has designated a successor to her, elisse walter. cnbc has been talking to a lot of different folks here trying to get some information about who might then succeed elisse walter who is expected to finish out mary schapiro's term. one name i want to throw out is the white house is talking to sallie krawcheck about a few different roles, including chairman of s.e.c. she's worked at bank of america and citi and other places on wall street as well. that's one name to keep an eye on, bill. back to you. >> very interesting. eamon, thanks very much. clicks and profits, u.s. consumers are expected to spend at least $1.5 billion on this
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cyber monday. we'll run through the cyber winners and losers next. here's another number. $5 billion, that's how much americans are expected to spend on christmas gifts for their pets this year. we'll talk to petsmart ceo in a cnbc exclusive about his company's share of this huge holiday booty coming up. plus, flu shot or your job? 150 employees getting canned the day before thanksgiving for refusing to get flu shots. is that legal? stay with us. i put away money. i was 21, so i said, "hmm, i want to retire at 55." and before you know it, i'm 58 years old. time went by very fast. it goes by too, too fast. ♪ but i would do it again in a heartbeat. [ laughs ] ♪ ♪
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americans clearly did not get all their shopping done this weekend. consumers expected to spend $2 billion online today. >> holy moly, as you would say. ibm's julie breaks down how many sales are being swiped on mobile devices in a moment. let's start with courtney reagan who has some of the craziest cyber monday deals being offered. >> thanks, bill. don't tell anyone i've been shopping online but we had to do this to search the blogs and commentary. we got guidance from google's top search. tablets are trending. google says kindle fire and ipad mini are in the top ten shopping related queries today. amazon local is offering the kindle fire for $129 when you
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add "fire ship." walmart is offering the xbox 360 bundle and sky lander for 150. national retail federation says eight in ten consumers are taking advantage of the promotional pricing this weekend to buy nongift items. on this dotcomer's day sears is offering a whirlpool high efficiency top-load washer for $4 $499.99. that's a saving of 250 bucks. history continues to be made hour by hour here. ibm has been tracking online retail sales activity. the growth has moved high hour. 10 a.m., up 17%. now shoppers are scooping up deals, spending nearly 26% more
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than last year. we'll see what happens as the day pulls to an end. >> big numbers. i apologize. i called jill julie. thank you, courtney. >> over 20%, that's how many consumers shopping online are using mobile devices to do it. that's up 50% from last year. ibm jill polari is joining us. . this makes sense with phones because it's gotten faster with expansion and smartphones. >> when we were tracking these numbers we saw the iphone was number one. after thanksgiving, people turned to the ipad. we saw this absolutely change the way people shopped last year. we saw them waiting until after dinner to start shopping on thanksgiving. now they're shopping all day long. your iphone is your new you tut
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at the dinner table. sad but true. >> i love the phrase couch comercom comers. you coined it. no flu shot, no job. this is for real. one company has fired 150 employees for failing to get a flu shot. even if it's legal, should a company do that? they had a reason. we'll explain. our heated debate up next. you've heard the saying, if you build it, they will come. petsmart sells this, look at this, this is a designer crate for $500 for your puppy dog. we'll talk to petsmart's ceo about how nonessential items like this are driving his company's stock. >> who said that's not essential? >> that's what i was thinking. >> exactly. it would make a nice coffee table while you're at it. you're watching cnbc, first in business worldwide. having you ship my gifts couldn't be easier.
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150 workers of cincinnati based health care company are fired because they refused to get a flu shot. a free one. trihealth, a company that operates hospitals told the nearly 11,000 employees they had
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until november 1st to get the vaccine or they would be fired. it was offered free of charge. those who didn't were terminated wednesday. >> a lot of moving parts and pieces to this story. let's talk about with michael cannon of the cato institute of health policies. they said the company did the right thing and should go further to protect patients. >> barbara fisher says we should reach out to trihealth for comment -- i'm saying we reached out to trihealth and they declined comment. barbara, make the case why the company is out of line. >> vaccines, carry two risks. the vaccine will kill you or the risk the vaccine will not work at all. we know with flu vaccine it only works about 60% of the time. we know that the leading tault claims paid out by government
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under national childhood injury act of 1986 have been for influen influenza. forcing health care workers to engage this this medical risk taking is violation of informed consent rights. that's the progress taking by my organization, but also by osha and the afl-cio and american federation of teach efrz. >> michael, why do you think the firings are fair? >> i'm not sure the hospital should be requiring this but there are two issues here. one, does the hospital have the right to do this? i think unquestionably they do. the reason is we have tens of thousands of patients get hospital-acquired infections every year. many die from those. hospitals should be taking aggressive measures to control those infections. infectious disease spreading. the second issue is will this work. barbara's correct. there's a lot of uncertainty about that. these vaccines appear to work for adults between 18 and 65,
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less so for children and elderly. lots of other things hospitals could be doing. buzz there's so much uncertainty that's why hospitals need this -- >> i thought you were going to come from the point of view this is a private company and it can essentially do what it wants. >> he says they have the right to do that. >> that's what i'm saying. if the hospital workers don't to want work in that -- don't want to take a flu shot they can take it somewhere else. >> it's an illusion making every health care worker get a flu shot every year is going to control the transmission of flu in the hospital setting. 'mot saying that it is. >> people fully vaccinated can get infected and transmit this infecti infection. >> speak to the spirit of his argument, this is a private company. they can do what they want. that's how we work in america. >> that may be true. this is overreach by this corporation. it is overreach, violation of
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the informed consent rights of health care workers. we should have the civil and human right to be able to have full information about the benefits and risks that pharmaceutical products like vaccines and neighboring an informed consent decision. we shouldn't be threatened with loss of employment or loss of societal privileges if we don't get that flu shot. >> what about that, the whole -- i mean, you even acknowledge the efficacy of the flu shot is not 100%. >> right. >> and forcing people who might have an allergic reaction, they might have reasons they shouldn't have this flu shot. they should lose their job over that? >> well, barbara's right. this is not like a polio vaccine or a smallpox vaccine where benefits are well established and enormous. there are uncertainty if they work but hospitals have to have the flexibility to try these sorts of measures to stop the spread of contagion on. what's important here is not the -- whether the hospital
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workers are being -- well, of course, they have rights as well but the purpose of a hospital is to get -- is to improve the health of patients. if there are steps the hospital feels it needs to take to do so in order -- then they should have the flexibility to do so. >> ladies and gentlemen, good to have you. it was great. thank you, guys. >> we have to go. i'm sorry. it is a thorny issue. i'm torn. i don't know. i can see both sides of this issue here. very, very difficult. my theory is, i don't get the flu shot because everybody does so i don't need to. >> i don't get it because i'm fearful i'm going to get even sicker. >> there you go. chasing profits. americans spend, as we pointed out, $5 billion a year on holiday gifts for their pets and petsmart's right there to fetch a piece of that action. find out if ceo bob moran sees this trend continuing in this iffy economy. give us a minute and a half and we'll tell you what you need to know about tomorrow morning's markets.
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time to "toast today's close "with this. today is the biggest online shopping day of the year. cyber monday. and retail sales are expected to reach a whopping $20 -- $2 billion. retailers are expecting a boost on two other big days this holiday season. find out next.
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a toast to today's market close. retailers are expecting another jump in online holiday sales on green monday. the online holiday sales peak. >> yes, we're going to brand every single day between now and christmas coming up. in trade, the company best known for contracts on things like the presidential election is in hot water with the feds. we're joined from d.c. with the latest with hampton pearson. >> reporter: they sent in a complaint to federal court, they sold investment contracts that are technically options. options must be traded on
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approved regulated exchange. the focus is on hard futures commodity like oil and gold. in the prediction of markets wherever they may be based, they violate u.s. activity laws and rules enforced by the agency, that's what cfc enforcement director in a statement. a similar situation back in 2005. there was a settlement with them at that time. saying in trade violated that settlement agreement. bill, back to you. >> fido and fluffy will not be left out of the holiday cheer after all. americans are going to spend -- they do spend about $53 billion every year on their cats and dogs. some of that goes to holiday gifts for their four-legged friends.
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bob moran joining us for an exclusive interview. >> welcome back. >> thank you for joining us. spending on pets to me seems to be countercyclical or not as as subject to the cyclical movement. >> we look at our customers as pet parents and they look at their pets as being members of the family. they look at their pet now as a member of family. >> so you did buy him a christmas gift? >> what did he know? by the way, i wanted to ask you,
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it says 53% of dogs get a christmas gift but only 38% of cats. what's with the cat owners? >> cat owners are very, how do we say, value sensitive. they're always constantly looking at items they can do. they usually spend their money on cat cans. >> but if you could bridge that gap and get them to be more generous, think about your margins. >> opportunity. >> if i really wanted to be crazy and buy a super luxurious item for my pet, i don't have one, but if i did, what's the most outrageous thing i could buy? >> we did a poll within our -- on the internet and we talked to 1.5 million customers to say what their favorite item would be and it ended up being a sunbeam biscuit maker so you can make biscuits at home for their dogs. that was pretty exciting. >> i saw -- i saw bunk beds for dogs, right?
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>> that's true. we have over 10,000 items in our stores. we don't sell products. we sell solutions. because when pet parents come into our stores, they're always looking for something they can do in addition to what they've been normally doing. plus, they're looking for their pet also to live longer and happier lives, too. it's a lot of fun being in this business. >> strollers, there are pet strollers? i thought those were only for babies? >> what's on the dog collar that makes it worth 150 bucks? >> a lot of innovation and differentiation. >> yeah, right. how much growth is there still in this business? i mean, can you do much more than $53 billion in this industry per year? >> we think this is a great opportunity as we look ahead. one, there's a high correlation to housing and pet acquisition. right now about 62% of
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households, which equates to 73 million households have pets. we believe we're incredibly well positioned if there's any type of housing recovery to take advantage of this. we believe there is growth but also another trend happening. humanization of pets. we have not seen the end of this. as i said, pets are now being looked at as members of the family. we think there's a lot of emotional play still in this sector. >> anybody who's seen a cartoon knows they can talk, so -- thank you. it's great having you on. it's been a lot of fun. >> thank you, bill. thank you, michelle. >> where's the smart money going as we wind down the year? the head of a top hedge fund returned more on the other side of this break. >> people that don't have kids name their pets human names. it's the people that have kids name them fido and fluffy, things like that. >> who knew? >> what you need to know about
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money globally. >> founder of investments joins us here on the set. do more than 40% this year. that's very impressive. how do you see the situation with the fiscal cliff here in the united states? how does it impact what you do with your investments? >> first the fiscal cliff is totally something we think will get resolved somehow. last year the u.s. gave such a bad image trying to compete with europe. and basically within that they can't just do it again. >> you are talking about a committee of politicians. >> exactly. >> otherwise there will be no commitment on the health of europe to solve their own crisis. secondly we think with the election out of the way there is
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somehow less tension on the issue but there is a mandate. third what we like is we are seeing the economy rebounding in the states compared to europe. so -- >> you sound like you are buying the u.s. market. >> that is mainly financials. and we think there are some unique opportunities because most of the negatives are enterprise in terms of expectation and most importantly fear. but in reality there is tremendous value in what is the largest economy globally. >> the average retail investor, are there names you would suggest to financials that are safe for them? >> i think in the u.s. which is third in financials. anything that sits above equity.
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i would focus on the global and systemic financial important institution the one mandated by the g 20. i would say bank of america and citi group. >> they can't be allowed to fail. >> more regulation, less risk, yield balance to set. you get about a 6% yield combined with bank of america. >> as always we are running out of time. we are only fixated on the debt talks in europe primarily with greece right now. does that matter to us? should it matter to us here in the united states? >> i think greece doesn't matter on the numbers. we are talking about a country that has about 10 million people. you are talking about europe. in europe the yearly budget for
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agriculture is about 150. greece is maybe a political issue in how to deal when one of your kids doesn't pay his own bills. i think the issue will be resolved of about 15 trillion. 150 more or less of that is irrelevant. >> so great to have you here. >> thank you so much. key economic reports due to hit wall street first thing tomorrow morning. >> and we'll find out which ones will effect your investments the most on the other side of the break. stick around. ♪
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nice! get happy. get geico. fifteen minutes could save you fifteen percent or more. got 30 seconds on the clock. our next guests are here to tell us what they think will move the markets tomorrow. >> scott freeze, darren from yorkville capital management. scott, you are first. 30 seconds. what's important for you tomorrow? >> i think the most important thing tomorrow is the consumer numbers. we saw foreshadowing from dallas today. i expect it to be negative. i think volatility will continue to rule the day tomorrow. any news that comes out on the fiscal cliff talks i think if
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anything is in the headlines it will be negative for the markets. i think volatility will continue to be the call. >> you are up, 30 seconds. i think tomorrow will be focused on the fiscal cliff, specifically as it pertains to rising tax rates. any visibility that we can get on policy or clarity on a solution or compromise will move the markets. so focused on limited partnerships. they will be less affected from an increase in tax rates. from an income perspective we have been looking closely at the fund that yields over 9%. the return of capital characteristics are less effected by rising tax rates. >> peter, i know you watch everything but pick one. what is important for you tomorrow? >> i am going to look at greece to see if they come to an agreement on a short-term fix. it was supposed to be agreement
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today but seems the imf is holding out for debt reduction from greece. hopefully they will get a deal done. >> look at all of these people do it in under 20 seconds. >> thank you so much. >> before we go let's give you one more look at the markets how they did today. had a selloff on the open this morning. sort of a pullback from friday's rally. the dow finished down 42 points at 12,967. apple was higher. >> citi initiated coverage. we assume they had an analyst that left. >> they initiated coverage with with a buy recommendation. apple was up about 3% plus. i'm sure the fast money gang will be dealing with that. nasdaq was up nine points. >> we continue to dominate the whole discussion by the fiscal

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